Tokyo is the world’s hottest market for retail expansion, attracting 63 new global brands last year as leasing momentum in core areas remained strong.
In a list dominated by Asia and Middle East cities, Singapore ranked second with 58 new entrants, outshining Hong Kong which tied for fifth with Dubai (45 each) in the CBRE Group’s report How Global is the Business of Retail?
Singapore’s new entrant count was double the number of 2013 – with entrants largely in the food and beverage sector, with apparel and accessories chains a little further behind.
While Hong Kong finished fifth equal with Dubai on the list, it was still a respectable showing given CBRE surveyed 164 cities in 50 countries. In between Singapore and Hong Kong came Abu Dhabi and Taipei.
For foreign retailers entering Singapore for the first time, the Shoppes at Marina Bay Sands ranked as their top choice of destination, largely due to the steady flow of affluent customers streaming to and fro the connected casino facilities.
Globally, mid-range fashion retailers are the most active category looking at new market expansion, accounting for 21 per cent of activity, just a little more than luxury brands at 21 per cent.
In Asia, luxury and business fashion retailers drove 24 per cent of the region’s business expansion, followed by coffee and restaurant retailers at 22 per cent.
Meanwhile, the report found that the primary expansion targets for America’s retailers are Asia (41 per cent) Europe (33 per cent), and the Middle East and Africa (12 per cent).